(Alliance News) - PipeHawk PLC on Thursday said the partner of subsidiary QM Systems Ltd has received up to GBP2.5 million in funding, following production delays setting back their contract.
PipeHawk is a Hampshire, England-based provider of technology for highways and for the automotive, rail and aerospace industries.
Back in March, PipeHawk's subsidiary QM Systems Ltd signed a contract with ventilation systems specialist Ventive Ltd for the second phase of its project. It said it would manufacture a green energy product to provide domestic heating and hot water for Ventive.
On Monday, the company noted that it was facing production delays for the 'Ventive Home' system, which was due to begin in June 2022 and is now scheduled to start in September 2023.
It said that Ventive needs to raise additional development capital for production of the system, and it is at an "advanced stage" of discussions to secure this funding.
On Thursday, PipeHawk said that Ventive has now secured up to GBP2.5 million in development capital.
Of this, the UK Department for Business, Energy & Industrial Strategy awarded GBP1.5 million in funding to Ventive as part of its Heat Pump Ready grant.
In addition, an investment package has been secured by Ventive, led by the deep tech and venture capital specialist, EMV Capital, a subsidiary of AIM-quoted NetScientific PLC. This includes an initial equity and debt investment of GBP600,000 from new investors and the restructuring of around GBP1 million of historical debt in Ventive.
"This will provide Ventive with the necessary funding to deliver its modular heat pump production facility at QM, in Hartlebury, Worcestershire," it explained.
The funding will allow the product release to be in the fourth quarter of 2023.
Chair Gordon Watt said: "It is testament to Ventive, the product and its strong partnership with QM that it has been able to attract the additional funding required from a combination of sources including the BEIS Heat Pump Ready grant scheme and a wider circle of green industry focused investors."
PipeHawk shares were down 0.2% to 13.72 pence each in London on Thursday afternoon.
By Sophie Rose; sophierose@alliancenews.com
Copyright 2022 Alliance News Limited. All Rights Reserved.
Netscientific (NSCI)
PipeHawk (PIP)